Unemployment among people aged 16 to 24 jumped to over a million, according to this week's figures. It's almost double the national rate in Britain and shows that young people - particularly those without university degrees - are bearing the brunt of the financial crisis.

Katie Allen, our economics correspondent, argues that employment minister Chris Grayling is wrong to put the terrible figures down to the crisis in the eurozone. Dan Milmo, the Guardian's industrial editor, says manufacturing firms are still unwilling to expand, despite the slump in the value of the pound.

But over in Madrid, 21.9% of young people out of work would be cause for celebration, says Giles Tremlett, our correspondent in Spain. He points to nearly a half of young people out of work - the highest by far in Europe. Spain goes to the polls this weekend with a centre-right party poised to take over. Reforms of the labour market are inevitable, he says.

Also this week, we look at the Irish economy. Some economists have pointed to falling bond yields and positive GDP figures as evidence that austerity measures are working. Pete Lunn, an economist at the Institute of Economic and Social Research Institute, is less convinced. Much of the economic activity is being driven by multinationals with headquarters in Dublin, and there are still serious problems with the domestic economy, he says.